23 February 2024 , 13:03
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Ryanair has claimed that UK airports are at a 'huge disadvantage' due to air passenger duty (APD).
Jason McGuinness, the airline's Chief Commercial Officer, said that many airports outside of London are being 'hamstrung' as the tax limits growth in flight capacity. Passengers with economy tickets for UK departures are charged APD at a rate of £6.50 for domestic flights and £13 for short-haul trips.
The rate increases for longer flights and passengers travelling in premium cabins. Mr McGuinness said: "We're working closely with some of these small regional UK airlines, the likes of Norwich, Exeter, Teesside. But to be honest, they're at an enormous disadvantage now versus their European competitors."
"We allocate capacity based on one metric only that's cost." he explained. "We've done long term deals with the likes of Dubrovnik and Tangier, our two new bases. Do we put capacity into those bases or do we put capacity into somewhere like Exeter or Teesside where we have the £13 departure penalty on those passengers?"
He added: "The answer is clear, we're not going to do that because we are quite sensible in the way we allocate capacity. London will be always fine, but where UK APD is doing untold damage is to the regional UK airports." he warned. "I think that's going to get worse over the next number of years, predominantly because European airports are becoming significantly more competitive." The Treasury was asked for a comment.
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